Karen Jones, Head of FICC Technical Analysis at Commerzbank, does not rule out some consolidation in USD/JPY around the 107.30 region.
Key Quotes
“USD/JPY last week sold off to the 61.8% retracement at 107.27 and it is possible that we will see some near term consolidation around this point (the daily RSI did not confirm last weeks low)”.
“Rallies will find solid resistance at the 20 day ma at 108.39, and the market stays immediately offered below the near term downtrend at 108.58. Our initial target of the 107.27 61.8% Fibonacci retracement, has easily been met and we look for losses to the 78.6% retracement at 105.87″.
“Above the near term downtrend, minor resistance comes in at the 110.84 April 10 low and the 111.18 200 day moving average. These guard the 2015-2019 112.20 downtrend”.
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